Analysts at Bell Potter ran the ruler across Global Construction Services after the company provided profit guidance well below its expectations. The broker subsequently slashed earnings forecasts for 2013-14 and 2014-15 and reduced its 12-month share price target from 58¢ to 51¢.

The broker’s forecasts were arguably on the high side prior to management providing a trading update and revised guidance in May. At that stage it described market conditions in the Western Australian economy as challenging due to the delay of major projects, and management also noted it had made a doubtful debt provision of $1.5 million relating to the collapse of Forge Group.